Policy recommendations eyed for new mining projects

September 30, 2016 at 17:00

Policy recommendations that will pave the way for new mining projects will be out by year-end, something that may offset the potential shortfall in the country’s nickel production resulting from the government’s crackdown on existing operations.

This after only 11 companies out of 41 metallic mines have passed the Department of Environment and Natural Resources’ (DENR) nationwide audit.

Mines and Geosciences Bureau (MGB) Director Mario Luis Jacinto said that policy recommendations that will possibly lead to the abolition of Executive Order (EO) 79 will be ready by the end of this year.

Under EO 79, no new mineral agreements shall be approved until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.

“The review is ongoing and we are still consulting with various groups and getting their inputs. We should have clear recommendations on policy options by year-end,” Jacinto told Manila Bulletin.

“The mine audit results will be most useful  on determining pro-active alternative courses of action to pursue,” he added.

When asked if the government can start accepting new projects as early as next year, Jacinto said it will depend on how long the legislation process will be.

“The amendments, when already proposed, will go through the legislation process. Timetable for amendment will be the prerogative of Congress,” Jacinto said.

Jacinto earlier said the result of the mining audit will serve as a “good jump off point” as to where the mining industry is going in this administration.

But he specified that as long as Memorandum Order 2016-01 signed by DENR Secretary Gina Lopez still stands, the moratorium on new mining applications still stands.

Meanwhile, miners, including the members of Chamber of Mines of the Philippines (COMP), have expressed disappointment over the results of the government’s audit findings.

Out of its 21 members, eight members of COMP are recommended for suspension namely Benguet Corporation, OceanaGold Philippines Inc., Hinatuan Mining Corp., Lepanto Consolidated Mining Corp., Filminera Resources Corp., Marcventures Mining and Development Corp., Agata Mining Ventures, Inc., and CTP Construction and Mining Corp.

COMP Vice President for Policy Ronald Recidoro lamented how the whole mining audit was done in a punitive manner rather than objectively.

“When you suddenly change the rules of the game, there should have been an earlier dialogue between companies and the DENR given that the audit report was already finished in August. As early as August, the alleged violations could have already been addressed instead of setting a trap for suspension,,” Recidoro said.

This was following the pronouncement of DENR Secretary Gina Lopez to meet with the representatives of mining firms with show-cause orders tomorrow (Thursday).

Mining firms with show-cause orders were given seven days to explain why their operations should continue following alleged violations against the environment and lack of social acceptability.

Recidoro said mining companies are receptive to the call of Lopez for a dialogue with them.

“We stand by our member-companies. We are optimistic that these alleged violations will be addressed properly and in a timely manner,” he said.

For its part, Benguet Corp. expressed its surprise and takes exception to the findings and recommendation of the DENR to suspend the company due to non-rehabilitation of the Antamok open pit.

Benguet Corp. argued that it has continuously exerted efforts to initiate projects including converting it into a Bulk Water Project, and a Waste to Energy facility.

“Local government units have in fact requested and endorsed the pursuit of the projects, signing Memorandum of Agreements with the company as early as June 2016. While the company recognizes there was delay in the rehabilitation of the open pit for reasons beyond its control, it has not abandoned it,” the company said.

Source: www.mb.com.ph